Updated about 4 years ago on . Most recent reply
My First Offer Appraisal Makes Me Want To Back Out
The purpose of this property was to flip. Here are the specs...
1% Down Payment
FHA Loan Type
Inspection Returned - Nothing unexpected
FHA Appraisal Returned - The appraisal matches the exact offer accepted.
This is my first property so I'm wondering if I should be concerned that the appraisal is the exact amount of the offer accepted. This is a pretty established neighborhood and homes rarely come up for sale.
Is this appraisal matching the offer a concern?
Thanks and Cheers!
Maileen
Most Popular Reply
Well this has been bantered around before....
The appraisal is to essentially 'confirm' the value so the bank is comfortable with the loan they are making. It's based on comps, and the best comp for a property is one that is identical, and sells within the same timeframe. So by definition the best indication of value for that property is whatever you are paying for it. So it's pretty common that the appraisal comes in at that value...they're confirming that you are paying market value.